The role of the board is to govern the company by exercising a strict and diligent oversight in key areas like strategy and risk. But it cannot manage — or micromanage — the company’s business by encroaching on management’s responsibility that are designed to assist the executive team and the CEO bring value to shareholders.
To perform their tasks effectively boards must have www.contactboardroom.com/boardmaps-and-boardpaq-board-platforms-key-characteristics a clear governance structure and framework. This includes a clear definition of responsibilities from the chairperson all the way to the individual directors as well being a decision-making procedure that is used to establish priorities.
Additionally, a solid board governance framework requires a well-rehearsed process for planning meetings and agenda items. It also includes a robust governance framework that defines clearly the purpose of the board as well as its relationship with management. The framework includes a declaration of the board’s governing standards and values, such as integrity and transparency.
Finally, the board should also have a clear plan for selecting and developing the CEO and overseeing succession planning. It should have a plan to address urgent issues, and be ready to change its focus if it is required. The rules and procedures of the board must be in sync with the business and the board must be able to anticipate and respond to the changes happening in today’s fast-paced, highly complex environment. Board members should devote lots of time and energy to their board’s work.